Changes in Hong Kong stocks | Coal stocks rose in the afternoon, expanded safety supervision from private mines to state-owned enterprises or made supply constraints more sustainable

The Zhitong Finance App learned that the increase in coal stocks increased in the afternoon. As of press release, Power Development (01277) rose 4.37% to HK$2.03; China Coal Energy (01898) rose 2.90% to HK$11.37; Yankuang Energy (01171) rose 2.24% to HK$13.25; and China Shenhua (01088) rose 1.88% to HK$45.5.

According to the news, on August 27, the State Mine Safety Supervision Administration issued Mine Safety (2026) No. 84 “Opinions on Further Strengthening the Work Safety Work of State-owned Coal Mine Enterprises” to systematically strengthen the safety management of state-owned coal mines in nine areas, including shifting safety inspection responsibilities, normalization of safety inspections, and determination of production and operation indicators. Huatai Securities believes that the publication of Document No. 84 means that a series of safety supervision measures that have been strengthened since May 22 are expected to gradually shift from phased rectification to normalized restrictions. Considering that state-owned coal companies are important players in stabilizing domestic coal production and supply, supply flexibility may decline further in the medium term.

Great Wall Securities, on the other hand, said that in the context of the current energy crisis, power plants are more concerned about the “cash break-even line” rather than “report break-even.” The bank mentioned the power plant's statement break-even line of 860 yuan and the cash balance line of 1,000 yuan (that is, the corresponding thermal coal spot price). Currently, the price of coal has broken through 900 yuan, approaching the positive cash balance of 1,000 yuan, and has not yet reached the price level of 1,155 yuan.